You would probably notice similar issues on Sky, although probably not quite as bad. Pictures on Sky are usually marginally better than freeview because Sky basically have more room or bandwidth to play with, so they don't have to use quite so much compression as Freeview. Even satellite services have limits though, and Sky wants lots and lots of channels to make revenue from, so they do still use quite a fair amount of compression (so they have space for all those channels). It's this same issue that affects Freeview, now, and even more so when the analogue gets switched off. They want to fit in as many channels as possible, to make as much money as possible, and the picture quality suffers as a result. If it was up to me, their would only be a limited number of channels on Freeview - twenty or so, but they would be much more upmarket - no rip-off quiz channels and shopping channels, and as for picture quality - DVD quality at the absolute least. Actually, despite all the rubbish new channels popping up on Freeview, it's almost certain now that there will be some high-def content on the terrestrial service in the next few years, so maybe quality is beginning to be recognised as something that is important to people, and that people will hopefully demand.